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Another mixed session with the Dow Jones Industrial Average hitting a new all-time high as NASDAQ struggled and the S&P 500 was mostly flat. Driving the action for the Blue Chips were financials led by regional banks including M&T Bank, Fifth Third and Sun Trust.

Materials took it on the chin while (safe haven) utilities found more buyers than sellers. The market isn’t a rudderless ship and money isn’t moving to the sidelines but now it feels like it as earnings season winds down all eyes are looking down to the road for the next jobs report.

That said this market has proven repeatedly that lulls and dips are buying opportunities and the trend has been in place long enough not to be a fad. Earnings and most economic data are the reason this isn’t a fad although today’s report on consumer income and spending is worrisome.

The savings rate dipped a little indicating greater confidence to spend although some might point out flat incomes forced folks to dip into savings and I’m sure that’s correct for far too many Americans but overall, I see it as an improvement in confidence.

BLS

Industrial names looking to lead the charge today which means the Dow Jones Industrial Average is set to surge to another record high.

Also, the island of left-for-dead stocks has another grand slam winner today: Lumber Liquidators posted very impressive results this morning. This all gets back to the conundrum of chasing a record-breaking market or sitting around and hoping you’ll buy a correction or crash (hint- you won’t). Do you chase winners or buy stocks that haven’t participated understanding there should be a -negative- reason they are trailing?

The answer is you must do both and understand your out of favor position(s) might not rocket higher but there could be a point when the stock is soaring against the backdrop of a flat to declining market.

Comments

Charles, appreciate your sound, steady commentary. Especially your quote "Do you chase winners or buy stocks that havenít participated understanding there should be a -negative- reason they are trailing?

The answer is you must do both and understand your out of favor position(s) might not rocket higher but there could be a point when the stock is soaring against the backdrop of a flat to declining market."